BoZ’s injection of US$178M; temporal relief – Milupi

Opposition Alliance for Democracy and Development (ADD) president Charles Milupi has observed that any attempts to manipulate the exchange rate by injecting money on the market can only give temporally relief on the country’s currency.

Mr. Milupi says what is required to stabilize the Kwacha’s exchange rate is the strengthening of the economy so that investors and operators that generate foreign exchange have confidence in the country’s economy.

Mr. Milupi says when investors and operators alike that generate foreign exchange have confidence in the country’s economy it will be then that they will be able to offload their export earnings in the economy and ultimately build on the stabilization of the country’s currency.

The ADD leader has however observed that with the current situation where the Central Bank has injected US$178 million on the country’s market, it will mean that once investors no longer have confidence in the economy, capital flights will resume and the Kwacha will continue to slide.

The opposition leader says this is why it is important that the Central Bank induces confidence in the country’s economy.

He has told Qfm news in an interview that it is further important that government becomes fiscally disciplined to avoid budget overruns.